Fresh Initiatives Under Wraps Ahead of BRICS Summit – Brazil Ambassador

It is too early to identify initiatives, including a common currency pool, for the July summit of the BRICS emerging economies, Brazilian Ambassador to Russia Antonio Guerreiro told Sputnik on Tuesday.

MOSCOW (Sputnik) – In April 2015, Russia assumed the rotating presidency in the BRICS group that includes Brazil, India, China and South Africa. Moscow will host the group’s seventh summit in Russia's southern city of Ufa on July 8-9.

Last summer, the five partner nations set up the New Development Bank (NDB) as an alternative to Western global financial lending institutions. They also agreed to establish a $100-billion liquidity reserve to maintain the bank's financial stability.

The BRICS emergency currency pool is intended to provide a buffer in case of capital volatility, and help overcome short-term liquidity problems as well as rapidly offset fiscal deficits triggered by economic turbulence.

"The Sherpas of the different countries are getting together and I’m sure there will be a concrete result, [but] it is a bit too early to say," Guerreiro told Sputnik.

The nations are also mulling a separate credit-rating agency to counterbalance the undue influence of US-based organizations.

The BRICS group comprises over one third of the world’s population. The five nations have a combined nominal GDP equivalent to approximately 20 percent of gross world product.